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Don’t Bet on Doomed Industries

Don’t Bet on Doomed Industries

In the early 1980s, my dad worked as a paperboy in his New Jersey hometown.

Every day, rain or shine, he rode his bike delivering one of the local papers for $60 a week. It wasn’t much, but it was consistent.

After all, people needed their papers.

With the money he made as a paperboy, my dad was able to buy his own clothes, go out to eat with his friends and purchase records from his favorite artists — Jimi Hendrix, The Doors and The Rolling Stones, to name a few.

In fact, he was even able to buy his first car with the cash he saved up from his paper route.

Nowadays, physical newspapers feel like a relic of the past — and it’s all thanks to the internet.

Once news was easily accessible online … it was clear that the morning paper was in trouble.

And while my dad looks back on his days as a paperboy fondly, even he can’t deny the convenience of online news. He uses it on a daily basis.

You see, with the internet, the physical paper industry was facing a major headwind.

And as we’ve told you in American Investor Today before, you want to stay far away…

Swimming With the Tide

Even the best investors don’t stand a chance against an industry headwind.

That’s why you always want to avoid businesses facing difficult times as their industries go through periods of disruption.

As legendary investor Warren Buffett once said: “To swim a fast 100 meters, it’s better to swim with the tide than to work on your stroke.”

In other words, it’s much easier to make money in an industry with a strong tailwind behind it than one facing a headwind.

Blockbuster is a classic example of a business that faced a headwind and lost. Once streaming services like Netflix started to gain steam, the once-popular video rental found itself on a downward spiral. It eventually filed for bankruptcy in 2010.

Blockbuster Stock Decline Chart

This is exactly why you want to focus on industries riding on mega trends. You want companies that are in the opposite situation — you want them benefitting from a trend that’s pushing them forward.

Take health care, for example.

Today, the U.S. population is getting older and living longer. As a result, health care costs continue to rise. These costs now make up close to 18% of GDP.

And annual health care spending per person has soared over 44% in the past decade.

Businesses in this industry are clearly riding a mega trend that — unlike the morning paper — won’t be slowing down any time soon.

In fact, the aging population, rising wages for health care workers and increased spending on prescription drugs will continue to push this trend forward.

National Health Expenditures Chart

Remember, the more people spend on healthcare, the better those businesses do.

This is the exact type of industry that we at American Investor Today want to help you profit from.

How We’ll Help You Ride Tailwinds

My boss, Wall Street veteran Charles Mizrahi, has been in the business for nearly 40 years. And in that time, he’s learned how to spot the exact sort of companies we’re talking about.

In fact, he’s been telling our American Investor Today readers about health care since December 2019.

In that time, the leading health care exchange-traded fund (ETF), Vanguard Healthcare ETF (NYSE: VHT), has risen 23%.

His premium readers have done even better … One health care stock in his Alpha Investor model portfolio has soared since he recommended it in June.

One reader, Tracy S., said that she was up 72% on this recommendation in just six months.

Now, numbers like this are exciting … but they’re just the tip of the iceberg.

Because Charles always has an eye on companies at the center of mega trends like health care. He has around 30 open recommendations — all of them in industries with massive tailwinds.

And health care isn’t the only industry that’s done well for his readers. Just recently, we heard from several of them on their progress…

Alpha Investor subscriber Chad A. reported that he was up 28% in one portfolio stock after just three months.

Sabrina C. said she was up over 10% within two months of subscribing to the service.

And in that same time, Donna L. was up over 35% in one of Charles’ recommendations.

If you want the chance to profit like this, sign up to become a member of his Alpha Investor research service today.

He plans to bring you even more of these recommendations in 2021. You don’t want to miss out!

Regards,

Nicole Zdzieba
Assistant Managing Editor, Alpha Investor

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